More than 3500 jobs could be cut in Wellington because of a major government planned shake-up to the public sector.

The government's latest plan to slash public sector jobs is expected to have a significant impact on the Wellington economy.

An economist says the capital is set to "bear the brunt" of a major shake-up to the public service.

More than 3500 jobs could be cut in Wellington because of a major government planned shake-up to the public sector.